• Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

Compensation - Human Resources Management

Extracts from this document...

Introduction

Tyrus Woods Human Resources Management Chapter 10 - Compensation Many surveys have shown that employees rank pay low in importance. For example, a large-scale survey found that only 2 percent of Americans declared that pay is a very important aspect of a job. Compensation is a very complicated topic with several aspects, requiring various decisions for companies to make. Chapter 10 focuses directly on the vast array of subject areas related to Compensation. First, Compensation is said to have three components, base compensation, the fixed pay an employee receives regularity by salary (weekly, monthly). Pay incentives is another compensation type designed to reward employees for good performance. Pay incentives may include bonuses and profit sharing. Finally, benefits make up the last of an employees total compensation. ...read more.

Middle

However, variable pay is often more rewarding for those higher salaried employees. For employees earning more than $750,000 in base pay receives 90 percent variable compensation while and employee earning $25,000 per year in base pay only receives 5% variable pay. Companies must determine where pay decisions will be made. Often Human Resources (HR) is the centralized source for payment/compensation decisions. In contrast, a decentralized system, pay decisions are delegated into the firm, commonly to unit managers. While there are pros and cons to centralization and decentralization of pay decisions, in most cases, it may be more appropriate to centralize pay decisions. This becomes especially important if the organization faces frequent legal challenges. Too much centralization however does not handle equity concerns very efficiently. ...read more.

Conclusion

However, there is much debate as to whether the minimum wage is enough to secure a decent standard of living. Santa Cruz, California requires a minimum hourly wage of $12.55 as posted in the Emerging Trends Magazine. The Equal Pay Act (EPA) was passed in 1963 as an amendment to the FLSA. The EPA requires men and women to be paid the same amount of money if they hold like positions and are basically equal in terms of skill, effort and responsibility. There are exceptions however which include more seniority, better job performance, greater quantity or quality of production and nigh shift differential. Compensation is a very complicated topic of discussion and a critical aspect of the success of any company. While many companies are out-sourcing to decrease the amount of expenses compensation will continue to be a major focus. Careful planning and skill must be utilized to design and implement an adequate compensation system. ...read more.

The above preview is unformatted text

This student written piece of work is one of many that can be found in our GCSE People in Business section.

Found what you're looking for?

  • Start learning 29% faster today
  • 150,000+ documents available
  • Just £6.99 a month

Not the one? Search for your essay title...
  • Join over 1.2 million students every month
  • Accelerate your learning by 29%
  • Unlimited access from just £6.99 per month

See related essaysSee related essays

Related GCSE People in Business essays

  1. Managing Human Resources in Marks & Spencer.

    It may also mean gathering information on their age, length of service, qualification and performance results. If Marks & Spencer wanted to employ managers may look at the number of graduates on its staff or may look at the amount of graduates that are unemployed this is shown in Fig 1.1, so they can plan to forecast.

  2. A REPORT INTO HUMAN RESOURCE MANAGEMENT AT SAINSBURY'S

    that a CV is designed by the applicant whereas the application form is handed to the applicant to fill in. The advantages of application forms to the employer are: * The personnel staff will have identified specific requirements from the job and person specifications.

  1. Hostile is outsourcing: The story of Manufact

    18 months of skill, time and know-how which is currently in the "hands" of ISCorp; whom ManuFact are reliant on. In this particular case I feel that the disadvantages outweighed the advantages and my reasons are given above. ManuFact fell in many pitfalls such as focusing their negotiation solely on price.

  2. Total Quality Management

    Costs can be analyzed on a component by component basis, or one can analyze the organizational contribution to the cost structure. If the information is presented in the form of a pie chart it is easy to see where the main costs occur.

  1. Human Resources.

    o Disability Discrimination Act 1995 updates the protection for disabled persons and places it onto a similar basis as for other forms of discrimination. Key aspects of the Act warn against discriminating when advertising jobs, appointing staff, promoting staff and providing staff benefits.

  2. Knowledge of the responsibilities covered by the human resources function with in the business, ...

    should be trained in, in order to deliver the skills training required. The different types of labour market that is researched to plan human resources are: According to Stephanie Shields the current need of training in Bradford District and Airedale Corridor are in areas of Travel and Tourism, Leisure and Recreation and Information Technology.

  1. E1: Accurately describe the responsibilities covered by the human resources function in the ...

    long term effects on their ability to do everyday activities is termed disabled. * Equal Opportunities Act - This Act was introduced to treat any employees in an organisation fairly and have an equal chance to gain promotion or higher salary.

  2. What is Human Resources Management.

    � A clear view of the important success factors concerning people, and how this must be addressed in the strategy. The Chief Executive Officer (CEO) with vision provides the leadership from the top, and there is clearly recognition of the importance of people.

  • Over 160,000 pieces
    of student written work
  • Annotated by
    experienced teachers
  • Ideas and feedback to
    improve your own work